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Denmark, Iran Sign Water, Wastewater Agreements

A group of Danish water companies signed three memoranda of understanding with Iranian firms operating in water and wastewater engineering projects.

According to the Energy Ministry's news portal, the signing ceremony was overseen by Danish Ambassador to Iran Danny Annan and Alireza Daemi, deputy for planning and economic affairs, in Tehran on Tuesday.

"The MoUs call for collaboration between three Iranian companies, namely Iran Ensheab, Tamin Energy Development Company and Tara Engineering Company, and their Danish counterparts to manufacture water desalination units, set up wastewater treatment plants and produce smart water meters," Daemi said.

The ministry's report did not identify the Danish firms.

Highlighting the potentially huge role of Danish enterprises in providing financial resources and facilitating banking transactions to undertake water and wastewater ventures, the official hoped that Danish investors will take advantage of local workforce and resources in the Iranian market.

According to Daemi, the two countries have held conducive talks and workshops in the water industry since sanctions were lifted in the beginning of last year.

"Not long ago, the Energy Ministry had technical cooperation with Denmark not only in building wastewater treatment plants but also in conducting scientific surveys," the official added, noting that MoUs can pave the way for expansion of ties between the two sides.

Grappling with increasingly dwindling water resources, persistent drought and high levels of consumption, the Iranian government is stepping up efforts to modernize the country's dilapidated water supply network, build new treatment facilities and employ cutting-edge irrigation systems to curb the excessive use of water.

In an effort to help alleviate the country's water woes, the state-owned National Water and Wastewater Engineering Company also signed a preliminary agreement last month with the German Association for Water, Wastewater and Waste, as well as France Water Group, a consortium of French companies operating in the water industry.

Wing Energy Cooperation

In line with policies toward international companies, such as Danish wind energy firm Vestas, Iran Power Generation, Distribution and Transmission Company organized a seminar in Tehran on Monday that was attended by Annan.

Pointing to Vestas' new round of cooperation in Iran by helping generate electricity from wind, transferring the know-how of wind power plants and turbines, and integrating wind networks, Annan added that 20 Danish firms are doing direct business with Iran, yet the two sides can further boost their commercial relations.

"Iran's Sixth Five-Year Development Plan (2017-22) entails a 5,000-MW rise in renewable power production capacity annually," he said, noting that in spite of certain challenges, the goal is achievable.

Referring to the fact that 70% of Denmark’s electricity needs are supplied by wind power, Annan said although wind power industry is nascent in Iran, there are currently good opportunities for developing the capacity of wind power output in collaboration with foreign partners.

Energy experts believe that generating more green power at home would allow the country to export more of its fossil fuels abroad. Renewables account for less than 500 megawatts of Iran's total installed power capacity of around 77,000 MW.

According to Jafar Mohammad-Nejad, the planning deputy of state-owned Renewable Energy and Energy Efficiency Organization, stable electricity supply is contingent upon diversifying power production resources.

"Research has proven it to be quite feasible in the country, as it enjoys enormous potential for the production of different kinds of renewable energies, including geothermal, solar and wind power," he said.

Iran, an underdeveloped market for renewables by international standards, is laying out plans not to trail behind the global trend in this key sector.